State public health officials have been found the indoor smoking ban has resulted in an 89 percent improvement in air quality in North Carolina restaurants and bars in recent months. Air quality was measured using a machine that measures the number of particles in the air smaller than 2.5 micrograms. The U.S. Environmental Protection Agency measures these particles in outdoor air because they are known to cause breathing problems and contribute to premature deaths. Burning tobacco releases significant amounts of these particles, officials said.Officials collected air samples from 152 restaurants and bars in six counties from 2005 to 2007, and the results were compared with samples collected from 78 restaurants and bars in seven counties between January and March. The restaurants and bars where the samples were collected weren't aware of the action, officials said.

“These results show that North Carolinians are already reaping the benefits of our smoke-free air law by breathing healthier air in restaurants and bars,” State Public Health Director Dr. Jeffrey Engel said in a statement. “Secondhand smoke (shs, environmental tobacco smoke, ets, sidestream, involuntary, passive) is a very serious health threat. Exposing adults to secondhand smoke causes immediate adverse effects on the heart and blood vessels, increasing the risk of heart disease and, over time, lung cancer.”

Through April 11, health officials statewide had received only 18 complaints of violations of the indoor smoking ban, officials said. Businesses that break the no-smoking law can be fined up to $200 per day, and smokers themselves could get burned with a $50 fine if they keep puffing after they're told to stop.

April 23, 2010 - R.J. Reynolds Tobacco Co., the second-biggest U.S. cigarette maker, must pay $46.3 million to the widow of a Florida man who died from lung cancer in 1995, a Florida jury decided yesterday, April 21st.

Six state-court jurors in Gainesville voted unanimously in favor of the widow of Frank Townsend, who started smoking at age 13 or 14, according to Greg Prysock, who represented Lyantie Townsend in the case.

The verdict is the latest in favor of a smoker or family member in the state following a 2006 Florida Supreme Court decision in the “Engle” case, which allowed individual smoker lawsuits after the court decertified a statewide class-action case.(Cigarette Makers Face Thousands of New Florida Lawsuits..)

Smokers and their families have won 13 verdicts in 15 trials in these post-Engle cases, including five in March and April, according to Edward Sweda, senior staff attorney for the anti-smoking Tobacco Products Liability Project.The jurors in Gainesville yesterday returned a verdict of $10.8 million in compensatory damages plus $80 million in punitive damages, Prysock said. Because jurors found Townsend 49 percent responsible for his illness and death, R.J. Reynolds must pay 51 percent of those damages, or $46.3 million.

“We’re disappointed with the jury’s verdict and plan to appeal,” said R.J. Reynolds spokesman David Howard.

April 23, 2010 - MONTGOMERY, Ala. -- A proposal to ban smoking in Alabama restaurants failed after the state House did not vote on it Thursday, April 22nd the last day of the 2010 regular legislative session.

The bill's sponsor, Sen. Vivian Davis Figures, D-Mobile, said she tried to get the bill on a list of measures to be considered by the House but was unsuccessful. The longtime smoking-ban proponent said she plans to try again next year. "I'll be back. You can count on it," Figures said.

Figures, who suffers from bronchitis and asthma, has been fighting for a statewide comprehensive smoking ban in most public areas for at least 11 years. This year, she offered a more modest bill, restricting the ban to restaurants.But that approach drew the ire of the Alabama Restaurant Association, which argued that its members were being unfairly singled out. "We have, in the past, supported a statewide smoking ban," said Jennifer Price, a spokeswoman for the association. "We want bars and restaurants alike to be included, so it doesn't give anyone an unfair advantage."

Despite the bill's failure, Figures said she thought restricting the law to restaurants was the right approach. "I think that's definitely the way to go, is to whittle at it a little at a time, because the support is definitely not there" for a comprehensive ban, Figures said.

During a public hearing on the smoking ban earlier this month, restaurant owners said they've already taken steps to reduce secondhand smoke. "We've got a completely separate area ... separately ventilated, and has a whole separate nonsmoking area with a bathroom on the nonsmoking side," said Johnny Sullivan of Sinclair's, a popular Montgomery eatery.

But supporters of the ban said those protections didn't go far enough.

April 23, 2010 - Philip Morris International (PMI), which sells Marlboro cigarettes and other brands internationally, posted a lower-than-expected quarterly profit, hurt by a tax increases and a weak economy in parts of Europe.

Segmental DetailsPhilip Morris' total cigarette shipment volume for the first quarter edged up 0.7% to 204.74 billion units from last year's 203.38 billion units, boosted by a 11.4% growth in Asia, and a 4.4% rise in Latin America & Canada. This nearly offset by a 4.8% decline in the European Union (EU), and a decline of 5.2% in Eastern Europe, Middle East and Arica (EEMA).

EU region net revenues, excluding excise taxes, grew 9.9% to $2.18 billion, due to favorable currency impact of $178 million. Excluding the impact of currency and acquisitions, net revenues increased only 0.8%, primarily reflecting higher pricing across most markets, which offset unfavorable volume/mix. Unfavorable economic conditions, primarily in the Baltic States and Spain also impacted revenues in the region.

Volume grew 07% - led by gains in Asia, primarily Indonesia. The EU posted a 4.8% decline, while Asia was up 11% and Latin America and Canada rose 4.4%. Marlboro-brand shipments were down 0.6% amid a sharp decline in Germany.

Chairman and CEO Louis C. Camilleri said the Baltics, Romania, Turkey and Ukraine suffered from the effect of steep excise-tax increases and weak economies.

Shipments excluding acquisitions sank 2.3 percent, hurt by the European economy and higher tobacco taxes. Volume tumbled 53 percent in the Baltics and 72 percent in Romania where tax increases have made it difficult for the average consumer to afford cigarettes, Chief Financial Officer Hermann Waldemer said.

Uncertainty over a large tobacco tax increase in Japan coming in October led the company to be cautious in its forecast, Chief Financial Officer Hermann Waldemer said in a conference call with analysts. Philip Morris had been planning to raise prices in Japan in June, ahead of the tax increase, but reversed that decision after competitors decided not to make similar moves, he said.

Based in Winston-Salem, N.C., the Reynolds American Inc. said it sold 18.2 billion cigarettes in the period, 2.5 percent fewer than a year earlier, when retailers and wholesalers cut their orders ahead of a one-time federal tax on inventory. Adjusting for those cuts, cigarette volume declined 4.8 percent. The company estimates that cigarette volume fell 7.3 percent industry wide. Reynolds’ cigarette market share grew by 0.2 of a percentage point to 27.9 per cent, with Camel’s share down by 0.5 of a percentage point to 7.1 per cent and Pall Mall’s share up by 3.6 percentage points to 6.5 per cent.

Susan Ivey, the chairwoman, president and chief executive of Reynolds American, said she was pleased with the overall profit growth given "significant competitive promotional activity and product introductions in both the cigarette and moist-snuff categories."

As Altria has done with UST and John Middleton Co. - Ivey said that the company has started consolidating the trade-marketing groups of its R.J. Reynolds Tobacco and American Snuff Co. subsidiaries into Reynolds Tobacco. Reynolds' unit has about 1,800 jobs, while American Snuff has about 350 — the job positions are spread throughout the country. The company said that "nearly all employees" with the American Snuff unit will be offered positions at R.J. Reynolds. Ivey: you're absolutely right in your observation, it is not cost-driven. It is driven by the opportunity to enhance the speed to market, to enhance our service to the retail trade.

Sales of growth brands (i.e. Camel and Pall Mall) grew 32.9 percent to 9.1 billion, with Camel filter styles down 5.3 per cent to 4.7 billion but Pall Mall up 134.3 per cent to 4.4 billion. Sales of support brands fell by 21.0 percent to 7.7 billion while sales of non-support brands fell by 33.1 percent to 1.4 billion. Premium brand sales were down by 11.8 percent to 10.3 billion but sales of value brands were up by 13.2 per cent to 7.9 billion.

Reynolds estimated that total US industry sales fell by 2.4 percent to 72.0 billion, with sales of premium cigarettes down 1.5 per cent to 51 billion and sales of value brands down 4.6 per cent to 21.1 billion.

Ivey: Now turning to Pall Mall. Pall Mall continued to steadily build volume and share in the first quarter as consumers increasingly discover Pall Mall value as a high-quality, longer-lasting cigarette at an affordable price. The company has been aggressively promoting Pall Mall as a longer-lasting and more affordable cigarette during the recession. The company continued to promote the brand through the first quarter in the face of significant competitive promotional activity. Pall Mall's promotional levels have moderated in the second quarter as the company continues to refine its strategic approach. We have gone much more to an everyday low price type of promotion with Pall Mall that has a lot of different geographic variables. And the net result of that is that we have moderated the overall investment in that promotion.

Ivey: The growth brands (i.e., Camel and Pall Mall) now represent just about 50% of R.J. Reynolds' volume. As you know, over the past five years, we discontinued 70% of the original SKUs (brands other than growth brands: Camel and Pall Mall).

Concerning the Canadian government settlement, as announced this month, R.J. Reynolds and its affiliate, Northern Brands International, have resolved civil claims and criminal charges related to cigarette smuggling in Canada in the 1980s and '90s. These settlements eliminate the uncertainties, expense and distraction that were associated with those claims. (Canada - tobacco firms settle cigarette smuggling case..)

Smokeless Tobacco

Reynolds American and other tobacco companies are focusing on cigarette alternatives -- such as snuff and chewing tobacco -- for future sales growth as tax increases, smoking bans, health concerns and social stigma make the cigarette business tougher.

Ivey: outlook for category growth in smokeless for 2010. Question: Should we expect a similar level of growth this year as we saw last year? Is that in your expectations? Our expectations are in this 5% to 6% range as we look through the year for moist-snuff.

A number of times we have remarked what a smart move it was for Reynolds to acquire Conwood. Philip Gorham, CFA morningstar.com put it perfectly: Conwood, the smokeless tobacco segment, has been the jewel in Reynolds' crown, providing top-line growth and enhanced profitability without much of the litigation that has hindered the cigarette industry for years. Conwood maker of Grizzly to change name to American Snuff Company..

Susan Ivey: Turning to American Snuff, American Snuff's first quarter performance also continued to show strength and resilience amid intensified competitive pricing and promotions.

American Snuff’s moist snuff volumes during the first quarter of this year, at 85.7 million cans, were up by 12.2 per cent on those of the first three months of 2009.Sales of Grizzly increased by 11.7 percent to 72.6 million cans, sales of Kodiak rose 12.0 per cent to 12.0 million cans and sales of other brands were up by 46.9 percent to 1.2 million cans. American Snuff’s share of the domestic market decreased by 0.7 of a percentage point to 28.1 per cent, with Grizzly’s share down by 0.7 of a percentage point to 24.0 per cent and Kodiak’s share unchanged at 3.8 per cent.

Grizzly, American Snuff's flagship brand, posted a significant increase in first quarter shipment volume despite intense competitive pricing and promotional pressures. Grizzly's share of shipments to retail declined in the first quarter due to distortions caused by substantially higher competitive promotional shipments. However, on a consumer off-take basis, which better reflects actual retail sales, Grizzly's share was up, reflecting the brand's strong value and equity. American Snuff further enhanced Grizzly's value and quality perceptions with the March introduction of embossed metal lids across the brand styles.

Grizzly also continued to post first quarter volume and share gains with its pouch products, delivering especially strong growth on Grizzly Wintergreen pouches. Adding to Grizzly's appeal among a broad base of moist-snuff consumers was the introduction of Grizzly 1900 Long Cut, a natural product with a traditional long cut. This product has performed very well in the first few months.

Later in the quarter, American Snuff improved its premium positioning with packaging upgrades, which further enhanced Kodiak's image. Kodiak's share remained steady in the first quarter, while generating double digit volume growth. And the company is also improving its premium position with Camel Dip, which leverages the brand's authentic heritage with packaging and product innovation.

Turning to American Snuff, American Snuff's first quarter performance also continued to show strength and resilience amid intensified competitive pricing and promotions. Despite these challenges, the company held adjusted operated income steady. In addition, they increased their adjusted operating margins. American Snuff also increased its moist-snuff shipment volume.

Grizzly, American Snuff's flagship brand, posted a significant increase in first quarter shipment volume despite intense competitive pricing and promotional pressures. Grizzly's share of shipments to retail declined in the first quarter due to distortions caused by substantially higher competitive promotional shipments. However, on a consumer off-take basis, which better reflects actual retail sales, Grizzly's share was up, reflecting the brand's strong value and equity. American Snuff further enhanced Grizzly's value and quality perceptions with the March introduction of embossed metal lids across the brand styles.

Grizzly also continued to post first quarter volume and share gains with its pouch products, delivering especially strong growth on Grizzly Wintergreen pouches. Adding to Grizzly's appeal among a broad base of moist-snuff consumers was the introduction of Grizzly 1900 Long Cut, a natural product with a traditional long cut. This product has performed very well in the first few months.

Later in the quarter, American Snuff improved its premium positioning with packaging upgrades, which further enhanced Kodiak's image. Kodiak's share remained steady in the first quarter, while generating double digit volume growth. And the company is also improving its premium position with Camel Dip, which leverages the brand's authentic heritage with packaging and product innovation.

The company said volumes of its Kodiak and Grizzly smokeless tobacco grew 12.2 percent compared with the year-ago period.

American Snuff’s moist snuff volumes during the first quarter of this year, at 85.7 million cans, were up by 12.2 per cent on those of the first three months of 2009.

Sales of Grizzly increased by 11.7 per cent to 72.6 million cans, sales of Kodiak rose 12.0 per cent to 12.0 million cans and sales of other brands were up by 46.9 per cent to 1.2 million cans.

American Snuff’s share of the domestic market decreased by 0.7 of a percentage point to 28.1 per cent, with Grizzly’s share down by 0.7 of a percentage point to 24.0 per cent and Kodiak’s share unchanged at 3.8 per cent.

Grizzly, American Snuff's flagship brand, posted a significant increase in first quarter shipment volume despite intense competitive pricing and promotional pressures. Grizzly's share of shipments to retail declined in the first quarter due to distortions caused by substantially higher competitive promotional shipments. However, on a consumer off-take basis, which better reflects actual retail sales, Grizzly's share was up, reflecting the brand's strong value and equity. American Snuff further enhanced Grizzly's value and quality perceptions with the March introduction of embossed metal lids across the brand styles.

Grizzly also continued to post first quarter volume and share gains with its pouch products, delivering especially strong growth on Grizzly Wintergreen pouches. Adding to Grizzly's appeal among a broad base of moist-snuff consumers was the introduction of Grizzly 1900 Long Cut, a natural product with a traditional long cut. This product has performed very well in the first few months.

Later in the quarter, American Snuff improved its premium positioning with packaging upgrades, which further enhanced Kodiak's image. Kodiak's share remained steady in the first quarter, while generating double digit volume growth. And the company is also improving its premium position with Camel Dip, which leverages the brand's authentic heritage with packaging and product innovation.

Turning to American Snuff, American Snuff's first quarter performance also continued to show strength and resilience amid intensified competitive pricing and promotions. Despite these challenges, the company held adjusted operated income steady. In addition, they increased their adjusted operating margins. American Snuff also increased its moist-snuff shipment volume.

Grizzly, American Snuff's flagship brand, posted a significant increase in first quarter shipment volume despite intense competitive pricing and promotional pressures. Grizzly's share of shipments to retail declined in the first quarter due to distortions caused by substantially higher competitive promotional shipments. However, on a consumer off-take basis, which better reflects actual retail sales, Grizzly's share was up, reflecting the brand's strong value and equity. American Snuff further enhanced Grizzly's value and quality perceptions with the March introduction of embossed metal lids across the brand styles.

Grizzly also continued to post first quarter volume and share gains with its pouch products, delivering especially strong growth on Grizzly Wintergreen pouches. Adding to Grizzly's appeal among a broad base of moist-snuff consumers was the introduction of Grizzly 1900 Long Cut, a natural product with a traditional long cut. This product has performed very well in the first few months.

Later in the quarter, American Snuff improved its premium positioning with packaging upgrades, which further enhanced Kodiak's image. Kodiak's share remained steady in the first quarter, while generating double digit volume growth. And the company is also improving its premium position with Camel Dip, which leverages the brand's authentic heritage with packaging and product innovation.

Camel Snus, the brand’s first smoke-free product, was expanded nationally last year. On a cigarette-equivalent basis, which assumes that a tin of Camel Snus is equal to a pack of cigarettes, Camel Snus had a relatively stable share of 0.2 percent in the first quarter. That brought Camel’s total-tobacco share, which includes Camel cigarettes and snus, to 7.3 percent in the first quarter, down 0.3 percentage points, driven by the cigarette declines. “Snus is still a relatively new tobacco category in the U.S., and we believe that consumer awareness and trial of Camel Snus will benefit from the national expansion of competitive snus offerings,” Delen said.(Daniel (Daan) M. Delen is chairman, president and chief executive officer of R.J. Reynolds Tobacco Company, the largest subsidiary of Reynolds American Inc.)

Ivey: Sales of Camel Snus have remained relatively stable since its national expansion last year. R.J. Reynolds is simplifying the pricing promotional strategy for Camel Snus and putting more emphasis on engaging and educating consumers about this relatively new product category. R.J. Reynolds believes that the national expansion of competitive Snus products will increase category awareness and will benefit Camel Snus.

Camel’s dissolvable products — Orbs, Sticks and Strips — which were introduced in three lead markets last year, continued to generate good interest. Consumer feedback is being incorporated to improve the products and their packaging, as well as the company’s communications to adult tobacco consumers about these products.

Susan Ivey: I think one thing that's kind of important to note is that our products were not on the market when that study in Pediatrics was done. And so there is no representation really of Camel dissolvables in that study.

She was then reminded - except for a picture of Orbs. Ivey: Correct. There is a picture. There just is not a study. And I think we certainly have gone to great lengths to ensure child-proof packaging and on tobacco behind-the-camera display. So to your other question, we are working with the FDA and their inquiry about dissolvables. As you know, we believe that a harm-reduction strategy and the position from the FDA on that strategy is important to the future of the category. And we will continue to work with them as they go through that process. I think we just have to wait and see, but I do believe that the science should really drive the decision.

April 22, 2010 - According to Fikret Bekir from the Bulgarian National Tobacco Producers’ Association, tobacco producers are protesting because they are demanding state subsidies for tobacco that has already been produced and sold should be apportioned evenly between the producers. Bulgaria’s Agriculture Minister, Miroslav Naydenov, who spoke at a news conference in Sofia, the protests are caused by contradictions among different groups of producers growing different sorts of tobacco. “We accept that there will be those who might be dissatisfied. It is their right to protest,” Naydenov said.

He announced the new state subsidies for the various sorts of tobacco saying that the government had approved them in accordance with the recommendations of the Parliamentary Committee on Agriculture. The Minister pointed out that Bulgaria had a quota approved by the European Union (EU), and a maximum subsidy of BGN 116 M that it could apportion among tobacco growers. He explained that the fact that the subsidies per produced unit of tobacco were lower in 2009 than they were in 2008 was because more tobacco was produced in 2009.

Bulgarian tobacco growers can at least afford a sigh of relief after the country’s Finance Minister, Simeon Djankov, said that Bulgaria had started in the second quarter to overcome its economic crisis. Djankov said that during the first quarter of this year the government had paid out sums of money owed by the state to tobacco farmers and other agricultural producers.

In the first quarter, we have been paying out sums owed by the state to tobacco producers and other agricultural producers. To do that, we used revenues raised by the Customs Agency. It has turned out that we had smaller revenues that expected but starting in April, we are going to have a balanced budget, or we might even have a small monthly surplus. It is crucial to demonstrate that we are in firm control of Bulgaria’s finances despite the difficulties generated by the financial crisis,” Djankov said on the BNT 1 TV Thursday.References: Bulgaria Tobacco Growers Skirmish with Police at Danube Bridge, Novinite.com (Sofia News Agency), 4/21/2010; Finance Minister: Bulgaria's Economic Recovery Has Started, Novinite.com (Sofia News Agency), 4/22/2010.

April 21, 2010 - As a prelude to the Second Working Group meeting of the World Health Organisation (WHO) Framework Convention on Tobacco Control a media workshop has been organised in Accra, the capital of Ghana to discuss progress made by Ghana with regard to the implementation of the WHO conventions on tobacco control. (Ghana - WHO FCTC meeting - alternatives to growing tobacco..)

Below is a summary of an editorial on the progress Ghana has made in control control.

A team led by Dr. Ahmed E. Ogwell Ouma from the WHO Framework Convention on Tobacco Control was in Ghana last week to assess the country's level of implementation of provisions of the convention. The team met with the media and the Civil Society Coalition on Tobacco Control among others.

What came up during these meetings clearly indicates that Ghana, one of the 40 countries that took the lead in ratifying the Convention (June 2004), has done very little in ensuring the implementation of the Convention.

In the first place, as it may have become common knowledge now, the country is yet to pass the Tobacco Control Bill into law in spite of the glut of advocacy by civil society on same. Different stories keep coming up as to where the bill actually is at the moment. Rumours have it that the delay is because government does not intend passing the bill in isolation but as part of the law on public health.

The fact that the law has not been passed, means that the country is lagging far behind in operationalizing key articles of the treaty. Article 11 for instance says that after three years of the coming into force of the convention, member countries shall adopt and implement laws to ensure that tobacco product packaging and labeling do not promote the product by any means. Same article also calls for bolder and clearer health warnings on the packages.As reported on page three of this paper, the country has failed to honour its obligations under the treaty on several fronts in spite of the fact that it ratified the Convention in 2004 and adopted it in 2005.

The situation is a source of worry for the leader of the team from the WHO, Dr. Ogwell Ouma. He told Civil Society Organizations working on Tobacco Control that his team was in Ghana because of the 'good name' the country has earned for itself internationally. He however expressed misgivings that if Civil Society and indeed government do not step up their efforts, the goodwill could wane.

Tobacco, as it has been shown by health experts, is depriving the world of significant numbers of its people. Nations, including Ghana, are losing a lot of their human resource to tobacco-induced deadly cancers and other complications associated with the use of the substance.

It is argued that the cost of treating tobacco related sicknesses far outweighs the income governments make from the tobacco trade. It is for these and other reasons that Public Agenda adds it voice to the many calls for the government of Ghana to pass the Tobacco Control Bill into law, without further delay, and to ensure that Ghanaians are saved the health hazards associated with tobacco use. The country needs every single one of its human resource; none of that should be lost through tobacco related diseases.

The tax on cigarettes has risen again from 73.5 percent to 81.4 percent and the kiosk owners believe that this will eat into their profits. They are asking the government to change the amount of taxation to allow a profit margin that makes their businesses viable.

Michael E. Szymanczyk, chairman and CEO of Altria: "We continue to be pleased with the performance of our tobacco companies' brands, particularly Marlboro and Copenhagen. Marlboro achieved record retail share results in the first quarter, and Copenhagen regained its position as the largest smokeless tobacco brand, as measured by retail share."

Cigarettes:Philip Morris (PM) USA’s domestic cigarette shipment volume during the first quarter of this year, at 34.1 billion, was 0.7 per cent lower that it was during the first quarter of 2009.

The company’s share of the domestic market, 50.2 per cent, was lower by 0.7 of a percentage point, with the share of its other premium brands falling 0.6 of a percentage point to 4.0 per cent and its discount brands slipping 0.4 of a percentage point to 3.5 per cent.

Shipments of Marlboro, at 29.6 billion, were up by 1.6 per cent, while shipments of other premium brands, at 2.4 billion, were down by 10.4 per cent, and shipments of discount brands, at 2.1 billion, were down by 17.0 per cent.

PM USA was able to report a record result for Marlboro, whose share increased by 0.3 of a percentage point to 42.7 per cent. This performance was said to have been driven primarily by Marlboro Menthol and the introduction of Marlboro Special Blend products. Mike Szymanczyk - well, we haven’t put an aggressive pricing structure on it (Special Blends). So it’s been promoted, but not at a level that exceeds, what would be the level we use on other promotional SKUs.

Smokeless Products:Altria noted its smokeless products segment financial and volume comparisons for the first quarter 2010 to a year ago were impacted by last year's FET increase. Net revenues for the smokeless segment increased 27.9 percent, to $381 million, compared to the prior-year period, due to higher volume.

Domestic smokeless products shipment volume for USSTC and PM USA was 21.9 percent higher than the prior-year period, due to product initiatives in the just-ended quarter -- the launch of Copenhagen Long Cut Straight and Extra Long Cut Natural, the national expansion of Marlboro Snus and expanded distribution of the Skoal Slim Can pouch -- along with trade inventory changes in the prior-year period related to the FET increase.After adjusting for these factors combined domestic smokeless products shipment volume for the first quarter of 2010 was estimated to be up approximately 5 percent. Copenhagen and Skoal's combined first-quarter adjusted shipment volume increased an estimated 11 percent. USSTC estimated the smokeless category's volume grew at a rate of approximately 7 percent in the first quarter of 2010.

Copenhagen's retail share grew 1.9 share points vs. the prior-year period to 25.6 percent, as the brand benefited from the launch of Copenhagen Long Cut Wintergreen in the fourth quarter 2009. Meanwhile, Skoal's retail share declined 0.9 share points compared to the prior-year period to 23.1 percent.

Question: expectation for the MST (moist snuff tobacco) category growth for this year, now that we are one quarter beyond this? Mike Szymanczyk - well, I can report it what looks to be the our estimate of what the growth rate is in the category I am not going to speculate on what are we doing going forward, but it seems to be running around 7%.

Marlboro SNUS - the product did not shift nationally to wholesale until late in the first quarter of 2010 it is premature to talk about retail share and adult consumer feedback. However, based on our test markets we believe Marlboro Snus has a good opportunity for future growth. Question: Snus, either your early lessons or just looking across to your competitors experience in terms of as a category, any early lessons you can share with us that we still can see in Marlboro the roll out?

Mike Szymanczyk - Well it’s very early. So we’re just in the stage of gaining distribution and getting it positioned on the shelf property. We do have some learnings from our test markets relative to engaging cigarette smokers on this subject that we will be putting in place as a part of this expansion of Snus, as I said in my comments, we feel pretty good about the >font color=red>potential for Snus, we set for a long time, we think this will be a kind of a methodical development of a business rather than something that happens rapidly.

And so based on the fact that I think we have a better understanding of that now than we did within the test markets we should see some more positive results from this as it kind of unfolds over the next few years, but it’s very early for us to be able to read anything on this. Frankly, again, I think by the end of the year we can probably compare it at least somewhat kind of a similar duration of time in the test markets and see what’s different and we will be looking back and try to understand that.

Cigars:Like Altria's other tobacco businesses, its cigars segment financial and volume comparisons for the first quarter 2010 were impacted by the FET increase in 2009.Net revenues for the cigars segment increased 17.4 percent vs. the prior-year period to $135 million, reflecting higher pricing as a result of the FET increase. Excluding this factor, net revenue decreased 12.1 percent to $87 million, due to lower volume.

Reported OCI for the cigars segment in the first quarter of 2010 decreased 13.0 percent compared to the prior-year period, falling to $47 million, due primarily to lower volume, partially offset by higher pricing.

Middleton's reported cigar volume decreased 18.3 percent to 282 million units during the first quarter 2010 compared to the first quarter 2009. The company attributed the decrease to wholesalers that accumulated cigar inventory in advance of the FET increase, as there was no floor tax in the 2009 FET increase for machine-made large cigars. Later, wholesalers reduced inventory levels on Middleton's products from the beginning to the end of the first quarter of 2010, according to the company. In addition, Middleton also shipped new product pipeline volume for Black & Mild Wood Tip in the first quarter of 2009.

After adjusting for these factors, Middleton's shipment volume -- as well as the volume for the entire machine-made large cigar segment -- was estimated to be flat compared to a year ago.

Black & Mild continued growing its retail share versus the first quarter of last year despite a challenging environment due to an increase in competitive promotional activities. Middletown is monitoring the competitive environment and plans to respond appropriately to defend Black & Mild’s marketplace position.

New products will play in an important role in the brand strong retail share growth. And in the second quarter Middleton plans to introduce Black & Mild Royale to continue building its strong position in the machine-made large cigar category.

In a note to investors, Credit Suisse analyst Thilo Wrede noted the strong performance of its Marlboro, Copenhagen and Skoal brands. But he also highlighted worries that Altria lost cigarette market share for the fifth consecutive quarter and its smokeless business is growing at a slower pace than industry estimates. (Altria Group 1st-quarter profit rises by: MICHAEL FELBERBAUM, Associated Press, 04/21/10)

Symbol - House of Representatives..April 22, 2010 - The House of Representatives’ (DPR) Finance and Banking Commission (Commission XI) has opposed the government’s plan to lower cigarette production to 248.4 billion sticks from 261 billion this year.

The People's Representative Council (Indonesian: Dewan Perwakilan Rakyat, DPR), sometimes referred to as the House of Representatives, is one of two elected national legislative assemblies in Indonesia. Together with the Regional Representatives Council (Dewan Perwakilan Daerah/DPD), a second chamber with limited powers, it makes up a third chamber, the People's Consultative Assembly (Majelis Permusyawaratan Rakyat). (People's Representative Council)

Golkar Party lawmaker Nusron Wahid said on the sidelines of a budget revision hearing on Tuesday, April 20th the production cut would cause the state to lose Rp 10 trillion (US$1.1 billion) in potential revenue. “The production should stand at 261 billion as originally planned,” Nusron said.

He suggested that the government stop drafting a regulation on control of tobacco impacts, which would require the government to lower national cigarette production.

Nusron also suggested that the government lower excise tax imposed on clove cigarette products but increase that imposed on unflavored cigarette products. “Consumers of unflavored cigarette usually have a higher income than clove cigarette consumers,” he said

The government has proposed an increase in tax excise for all cigarette products in a bid to boost revenue to Rp 57 trillion (US$6.27 billion) in 2010, up from Rp 54 trillion in 2009.

The OMA report said the province needs to do more to help smokers quit. Ontario tobacco use accounts for 85 percent of lung cancers, 30 percent of cancer deaths and 13,000 deaths a year. The doctors' group said there are 2.3 million smokers in Ontario, compared with 2.1 million in 1966.

After taking into account growth in the province's population, from 6.7 million in 1966 to more than 12 million now, the proportion of the population smoking is much smaller, but the overall number of smokers remains high, the group said.

"It's unfortunate, but the simple fact is there are still far too many people who smoke and who suffer from preventable tobacco-induced illness, and it is having a significant impact on our health-care system," OMA president Dr. Suzanne Strasberg said in a release.The doctors' group urged the province to:* Create a comprehensive smoking-cessation system across the province for people who want to quit, including no-cost medication, counselling and group therapy.* Drastically reduce the thousands of retail tobacco outlets across Ontario.* Place a moratorium on the sale of new tobacco products.* Control contraband tobacco products, imposing sanctions against suppliers of raw materials to unlicensed manufacturers and on people in possession of contraband.

"Tobacco control in Ontario today has two faces," the report's authors concluded."One is characterized by smoke-free spaces, retail and marketing controls, youth-focused initiatives, and some progress on smoking cessation. The other face of the tobacco scourge shows itself in proliferating supplies of contraband (illicit, illegal, smuggled) product, increasing numbers of both new combustible and smokeless products, continuing struggles of those addicted to find help breaking their addiction, and widespread and easy retail access to 'legal' products." The report noted that one-fifth of the cigarettes smoked in Ontario last year were estimated to be contraband.

The implementation of pictorial warnings on cigarette packs in the local market has reached a deadlock with manufacturers saying that rotational pictures would mean huge costs. Manufacturers have said that they would have to incur extra printing costs to have five rotational pictures as warnings on the cigarette packets throughout the year and would force them to increase cigarette prices.

According to the Director-General of Emirates Standardisation and Metrology Authority (ESMA), Mohammed Badri, several manufacturers have objected to the concept of having more than one picture warning. “They are not comfortable with the concept of rotating pictures because of the huge costs involved and have asked for changes in the design,” he said.

Though the World Health Organisation (WHO) requires that the warnings cover 30percent of the product, the GCC authority for specifications requires display on 50 percent of the product.

“The manufacturers are also not agreeing to the 50 percent display,” said Badri. He said another meeting scheduled for next month would decide what course of action would be taken on this protest.Commenting on the decision of the manufacturers/traders, Dr Wedad Al Maidoor, Head of the National Tobacco Control Committee at the Ministry of Health, said, “This is not up to them to decide. “The specifications are part of the law and all companies need to abide by the law eventually.”

She said several companies have objections to operating in the local market despite the fact that they have already been complying with such regulations in other parts of the world. “Australia demands that 75 percent of the packs be covered, and companies do it,” she said. Many of the objections were just delaying tactics.

“The companies are just pressuring the authorities but it will not work,” she added.

A local manufacturer said that adding pictures would mean increasing costs by at least 20 percent. “We need special colour printers and scanning facilities,” said a representative of a Fujairah-based company manufacturing a brand available locally and for export as well. He, however, said more than the printing costs, the annually increasing price of tobacco is a source of concern. “Each year, tobacco prices go up by 30-35 per cent and if we are forced to increase even 25 fils per packet a year, the customers will feel the pinch,” said the representative who did not wish to be named. He also said that if the law required the changes, they would implement them without delay. “All we want is that the law should be the same for all companies,” he added.

April 22, 2010 - A day after Kelly Clarkson apologized to fans for not reading the fine print on her contract, resulting in her image getting prominently attached to ads for an Indonesian cigarette company, the tobacco purveyors have pulled sponsorship of her Jakarta tour stop.

Clarkson's promoter said that a "final agreement" had been made with L.A. Lights to eliminate all evidence of the company in time for the April 29 concert. That means all billboards and other ads, including TV spots, that feature the original American Idol will disappear in the next couple of days.

So ...my morning began with finding out that I am all over billboards, tv ads, and other media formats along side a tobacco company who unbeknownst to me is sponsoring my Jakarta date on my current tour. I was not made aware of this and am in no way an advocate or an ambassador for youth smoking. I'm not even a smoker, nor have I ever been. Unfortunately, my only option at this point was to cancel the show in order to stop the sponsorship. However, I can't justify penalizing my fans for someone else's oversight. This is a lose-lose situation for me and I am not happy about it but the damage has been done and I refuse to cancel on my fans. I think the hardest part of situations like this is getting personally attacked for something I was completely unaware of and being used as some kind of political pawn.

Earth Day - Tobacco Control Guide - Goal: To include cigarette litter and pollution control in Earth Day activities as part of a comprehensive tobacco prevention and control program to increase awareness of the detrimental effects of tobacco use to people and the environment and to consequently reduce tobacco use. Program Outline..

Yanuar also said that associating the famous singer with the cigarette brand L.A. Lights, was “a clear phenomenon that the cigarette company is attempting to recruit younger people.”

The ban will have little impact on the concert actually going ahead, however, with the vast majority of religious rulings ignored. It will, however, create additional pressure those behind the concert to remove the offending advertising. The concert promoters behind the controversial concert on April 29 say they are expecting to be able to release a statement on the issue later this afternoon.

A spokeswoman for promoters JAVA Musikindo said they were discussing the controversy and were expecting to make a statement soon. Promoter Adrie Subono, however, did tweet on the social networking Web site Twitter, that “2,513 of my hairs fell out, I have a headache.”

The promoters have used Clarkson’s fame to erect giant banners and billboards depicting the singer’s image and advertising for the cancer-causing products.

President Matt Myers Campaign for Tobacco-Free Kids: “If Kelly Clarkson goes ahead with the concert, she is by choice being a spokesman for the tobacco industry and helping them to market to children.” “She has the power now to turn this situation around and to send a clear message to Indonesian young people and, frankly, to the young people of the world.” (Campaign for Tobacco-Free Kids is involved with tobacco control throughout the world..)

As smoking has declined in many Western countries, it has risen in Indonesia — about 63 percent of all men light up and one-third of the overall population smokes, an increase of 26 percent since 1995. Smoking-related illnesses kill at least 200,000 annually in a nation of 235 million.This is not the first time cigarette sponsorship has drawn controversy in the capital - Jakarta. In 2008, Alicia Keys was forced to “apologize for any misleading advertising initially associated with the show” after Philip Morris International advertisements for its A Mild cigarettes appeared on promotional billboards and posters for her concert. (Alicia Keys - Jakarta Concert (July 31st) tobacco companies forced to withdraw sponsorship..)